Howard Schultz: ‘America right now is sick’

Starbucks CEO and former Sonics owner Howard Schultz opened up his online “Conversation With America” on Wednesday by saying it “took a lot of personal courage” on his part to call for a boycott of political donations until federal politicians reduce the deficit and work in a bipartisan manner.

Schultz (Joshua Trujillo/seattlepi.com files).

Schultz said that as someone who grew up in federally-subsidized housing in New York City, he was the “beneficiary of the American Dream.” He said he decided to try to starve politicians of their lifeblood –money – after watching the summer debate over raising the nation’s credit limit and attempts to deal with the federal deficit.

“America right now is sick. I think it’s very important that all of us recognize that leadership in Washington should not dictate to all of us, a direction that we know in heart and soul is wrong,” Schultz said Wednesday during the event organized by the non-profit group No Labels.

The businessman said there was a “direct linkage” between the soaring federal deficit and the “unbelievable pressure that is on the economy” and high unemployment levels.

However Schultz then complained about the fact that so many states are cutting budgets to deal with their own deficits.

“What’s coming in America, as a result of those state deficits, there’s going to be significant cuts in state services,” Schultz said. “The gap between the haves and the have-nots is going to get wider”.

More than 100 business leaders have put their names to Schultz’s pledge not to give money to Senate and House incumbents until there is genuine cooperation in Washington, D.C., to reduce the deficit.

The names on the list — those who have allowed Schultz to use their names — include AOL chairman and CEO Tim Armstrong; J. Crew CEO-chairman Mickey Drexler; billionaire and former Commerce Secretary Pete Peterson; and Intuit chairman Bill Campbell.